Derivatives and Fair Value of Financial Instruments (Tables)

3 Months Ended

Apr. 02, 2022

Derivatives and Fair Value of Financial Instruments

Schedule of assets and liabilities measured at fair value on a recurring basis

	April 2,
(Millions of dollars)	2022		Level 1		Level 2		Level 3
Assets:
Trading securities – short-term investments:
Domestic equity securities	$	460	$	460	$	—	$	—
Domestic debt securities		452		163		289		—
Foreign equity securities		183		183		—		—
Foreign debt securities		138		4		134		—
Money market funds held in trading accounts		48		48		—		—
Other trading securities		14		—		14		—
Trading securities – other current assets		30		29		1		—
Long-term investment - BDC		79		—		—		79
Derivatives		14		10		4		—
Total assets	$	1,418	$	897	$	442	$	79
Liabilities:
Contingent consideration	$	17	$	—	$	—	$	17
Derivatives		47		43		4		—
Total liabilities	$	64	$	43	$	4	$	17

	December 31,
(Millions of dollars)	2021		Level 1		Level 2		Level 3
Assets:
Trading securities – short-term investments:
Domestic debt securities	$	542	$	247	$	295	$	—
Domestic equity securities		472		472		—		—
Foreign equity securities		193		193		—		—
Foreign debt securities		133		2		131		—
Money market funds held in trading accounts		59		59		—		—
Other trading securities		17		—		17		—
Trading securities – other current assets		29		28		1		—
Long-term investment - BDC		81		—		—		81
Derivatives		11		6		5		—
Total assets	$	1,537	$	1,007	$	449	$	81
Liabilities:
Contingent consideration	$	18	$	—	$	—	$	18
Derivatives		10		5		5		—
Total liabilities	$	28	$	5	$	5	$	18

Schedule of aggregated outstanding notional amounts related to derivative financial instruments

		April 2,	December 31,
(Millions)	Metric	2022	2021
Commodities:
Grain	Bushels	3	1
Soybean oil	Pounds	59	20
Heating oil	Gallons	14	15
Foreign currencies	U.S. dollar	201	95

Schedule of fair value of each type of derivative derivative held and where each derivative is included in the condensed consolidated balance sheets

		Asset					Liability
		April 2,		December 31,			April 2,		December 31,
(Millions of dollars)		2022		2021			2022		2021
Commodities	Other current assets	$	10	$	6	Other current liabilities	$	43	$	5
Foreign currencies	Other current assets		4		5	Other current liabilities		4		5

Schedule of gain or (loss) for each type of derivative and where it was recognized in the condensed consolidated statements of comprehensive income

		Three Months Ended
		April 2,		April 3,
(Millions of dollars)		2022		2021
Commodities	Cost of sales	$	(28)	$	2
Foreign currencies	Cost of sales		(1)		1
Foreign currencies	Foreign currency gains (losses), net		1		2
Interest rate swaps	Interest expense		—		7